Impact of Covid 19 Crisis on Enteprises Q1 2020

1. 1 Survey on Impact of COVID-19 on Enterprises and Needs - Turkey Report on Survey Results 31 March 2020

2. 2 Summary of findings (Assessment for the period covering 11-27 March 2020) • On the other hand, there are important differences that stand out in terms of the level at which companies are prepared to such a crisis. To the question “Does your enterprise have a business continuity or a contingency plan?” 34% of respondents replied «neither of the two». • While the practice of telecommuting is impossible for majority of the companies, there are striking differences between sectors and regions. For example, while telecommuting is possible for 70% of large companies, this rate gets as low as 32% for small-scale companies. • Daily routine of majority of the companies has shifted towards crisis management. However, there is a lack of information required for crisis management. The rate of companies whose operations have fully halted is 11% for large companies while it is 36% for small-scale companies. The rate of companies that partially shifted to crisis management is 61% at the level of large companies while it is around 30% among SMEs. • 95% of companies took measures against the crisis. However, the nature of the measures taken varies. Improvement of hygiene conditions at the workplace tops the list of measures as a measure taken by 85% of all companies. Three other measures taken by a considerable part of companies include supplying protective equipment at the workplace, cancellation of business travels and reducing the number of employees available at the workplace simultaneously. • A sizeable proportion of enterprises need that their payment of bills/taxes/social security contributions are postponed and discounted in addition to financial support. 80% of respondents point out that they need their bill/tax/social security contribution payments to be postponed and another 77% need tax discounts. Financial support to SMEs, postponement of repayment of loan, cheque and commercial debts are among other measures demanded by most of the companies. • 59% of companies are in a disadvantaged position on account of Covid-19 crisis due to factors beyond their control. Only 1 in 3 companies that are in a disadvantaged position demonstrates a level of resilience above the average in terms of measures taken against the crisis. It would be relevant to differentiate strategies of support against the crisis according to resilience and advantage levels of companies. • Business for Goals Platform (B4G) organized an online survey for enterprises on 23- 27 March 2020. A total of 780 companies that participated in the survey responded to 23 questions about the impact of Covid-19 crisis on enterprises, their prediction about evolution of the crisis and the kind of measures they need. Among the respondents, 282 companies (36%) are micro- (employing 1-9 people), 256 (33%) small-, 154 (20%) medium-, and 88 (11%) are large-scale companies. • It is observed that Covid-19 crisis has substantially impacted enterprises; however there are striking differences by regions, sectors and scales of enterprises. 62% of enterprises responded that they were «substantially impacted» while only 3% stated they were «not impacted at all». • There is no overall consensus as to how long the impact of Covid-19 crisis on enterprises will last. From an overall perspective, 18% of enterprises stated that «it is yet too early to say anything» while 29% said the crisis would impact Q2 2020, and 24% said it would impact Q3, and 18% said it would impact Q4. • Revenues of companies have decreased remarkably. The revenues of more than half of the companies has decreased by more than 50%. There are sizeable differences by regions in terms of volume shrinkage. 71% of companies in the Southeastern Anatolia stated their volume fell by more than half, while this rate is 32% in Western Anatolia. • It is understood that Covid-19 crisis will also have important effects on supply chains. 51% of companies considered that their supply chains «would be impacted substantially» (or 4, on a scale of 1 to 4) while 31% of respondents marked the extent to which their supply chains would be impacted as 3. • Covid-19 crisis is considered as a serious threat by many companies and causes business strategies to be reviewed. 79% of companies stated they were reviewing their strategies and activities for 2020 due to Covid-19 crisis. 2

3. 3 Descriptive features of respondent enterprises Figure 1: Distribution by region Figure 3: Distribution by main field of activity • Enterprises in various sectors from 47 provinces assessed effects arising from Covid-19 crisis in the online survey organized by B4G Platform on 23-27 March 2020. • A total of 780 companies participated in the survey. Although most of the regions in Turkey are represented, among 780 companies, 183 (23%) are from Istanbul, 160 (21%) are from Aegean region, and 128 (16%) from Mediterranean region. (Figure 1) • Micro-businesses and SMEs constitute majority of the participants. 282 companies (36%) are micro- (employing 1-9 people), 256 (33%) small-, 154 (20%) medium-, and 88 (11%) large-scale companies. (Figure 2) • 333 (43%) of respondents are in production/manufacturing, 288 (37%) in services, 162 (20%) in trade/retail sectors. (Figure 3) • In terms of sectors, there is a well- diversified representation: Share of the top- 3 sectors is around 33%. These sectors are namely construction (101), food and beverages (91), textiles and apparel (63). (Figure 4) 183 Production/Manufacturing 333 160 128 Services 288 95 84 Trade / Retail 162 41 31 28 Figure 4: Distribution by sector Figure 2: Distribution by company size (number of employees) 282 256 154 88 1-9 10-49 50-249 250 and above micro small medium large 3

4. 4 It can be observed that Covid-19 crisis has substantially impacted enterprises; however there are striking differences by regions, sectors and scales of enterprises. • To the question «To what extent did Covid-19 impact your enterprise?», respondents were requested to reply on a scale of 4, where 1 represented “not impacted at all” and 4 “impacted substantially”. 62% of enterprises replied «they were impacted substantially », while only 3% stated «they were not impacted at all. (Figure 5) This being the overall situation, there are striking differences by regions, enterprise scales and sectors. • It can be observed that the magnitude of the effect is smaller in less-industrialized regions. On the other hand, Mediterranean and Southeastern Anatolia regions are among the most impacted. (Figure 6) • Majority of companies in all fields of activity have been greatly impacted by the crisis. However, a more detailed look at the most impacted regions indicates that the situation may get radical. More than 95% of companies in trade/retail and services sectors in Mediterranean region, and production/manufacturing sector in Southeastern Anatolia region were impacted by the crisis substantially. (Figure 6.1) • The smaller a company’s scale is, the bigger the magnitude of effect is. 54% of large-scale companies were impacted substantially while this rate is 78% for micro- and small-scale companies. (Figure 7) 4 Figure 5: Answers to the question «To what extent did Covid-19 impact your enterprise?», % (Question 1) Figure 7: Answers to the Question 1, distribution by company scale, % % 62 %78 %77 %61 %54 %34 % 24 %28 %19 %16 %11 %10 % 11 %5 %4 1 1 1 0 % 3 1-9 10-49 50-249 250 and above 1 2 3 4 1 2 3 4 Substantially impacted Not at all Figure 6.1: For Mediterranean and Southeastern Anatolia regions, distribution by main activities, % Figure 6: Answers to the Question 1, distribution by region Mediterranean %97 %96 %69 %31 %4 %3 Production/Manufacturing Trade/Retail Services 1,2 3,4 Southeastern Anatolia %96 %4 Production/Manufacturing Trade/Retail Services 1,2 3,4

5. 5 There is no overall consensus as to how long the impact of Covid-19 crisis on enterprises will last. Figure 9: Answers to Question 2, outstanding differences by company scale, % • Considerably different levels of predictions among respondents as to how long impact of the crisis on enterprises will last provides evidence of level of uncertainty. From an overall perspective, 18% of enterprises stated that «it is yet too early to say anything» while 29% of enterprises said the crisis would impact Q2 2020, and 24% of enterprises said it would impact Q3 2020, and 18% said it would impact Q4. 11% of respondents said the impact of the crisis would cover 2021 as well. (Figure 8) • A similar high-level uncertainty persists when we evaluate predictions based on varying scales of companies. (Figure 9) • Average of the predictions of sectors indicates that effects of the crisis would diminish from Q2 and for tourism sector, would persist during Q3 (including summer season). (Figure 10) 1-9 10-49 50-249 250 and above 40 30 20 10 0 It is yet too early to say anything would impact Q2 2020 would impact Q3 2020 would impact Q4 2020 would impact 2021 Figure 8: Answers to the question «How long do you estimate effects of Covid- 19 crisis on your business will last?», % (Question 2) Figure 10: Answers to Question 2, outstanding differences by sector, % Tourism Other sectors (average) 50 %29 40 %24 30 %18 %18 20 %11 10 0 It is yet too early to say anything would impact Q2 2020 would impact Q3 2020 would impact Q4 2020 would impact 2021 It is yet too early to say anything would impact Q2 2020 would impact Q3 2020 would impact Q4 2020 would impact 2021 5

6. 6 Revenues of companies have decreased remarkably. Revenues of more than half of the companies has decreased by more than 50%. (Assessment for the period covering 11-27 March 2020) • 54% of respondent companies stated their revenues decreased by more than 50%. Rate of companies whose revenues decreased by 25-50% is 22%, and rate of companies whose revenues decreased by less than 25% is 21%. Only 2% of the companies had a growing volume of revenues in this period. (Figure 11) • There are sizeable differences by regions with regards to decrease in revenues. 71% of companies in Southeastern Anatolia said their revenue decreased by more than a half, while this rate is 32% in Western Anatolia. The rates in Istanbul, Western Marmara and Eastern Marmara, which are centres of gravity of the country’s economy are 48%, 39% and 63% respectively. (Figure 12) • Most of the micro, small and medium size companies report their revenue decreased by more than 50%. Magnitude grows as company scale gets smaller. (Figure 13) • As far as sectors are concerned, the most adverse impact on business volume is observed in tourism while impact on finance, machinery and agriculture is relatively small. (Figure 14) Figure 12: Answers to Question 3, outstanding differences by region %71 %63 %62 %61 %51 %48 %32 %39 %36 %32 %32 %26 %21 %27 %25 %19 %15 %20 %23 %18 %16 %20 %19 %10 %4 %4 %2 %2 %2 %0 %0 %0 Southeastern Anatolia Eastern Marmara Eastern Black Sea Mediterranean Aegean Istanbul Western Marmara West Anatolia Business volume decreased by more than 50% Business volume decreased by 0-25% Business volume decreased by 25-50% Business volume increased Figure13: Answers to Question 3, outstanding differences by company size Figure 14: Answers to Question 3, outstanding differences by sector Figure11: Answers to the question «How did Covid-19 crisis impact sales/business volume of your enterprise?, % (Question 3) %61 %60 %56 Banking, finance and insurance %41 %44 %41 %50 Machinery and equipment %59 %45 %54 Agriculture and livestock %59 %32 Food and Beverages %68 %25 %26 %23 Consumer Durables %23 %16 %77 %22 %24 %20 %20 Construction %80 %22 %21 %16 %20 Automotive and auxiliary… %80 %16 Textiles and apparel %6 %84 %4 %2 %2 %1 %10 Information and… %90 %4 Media, communications and… %96 Revenue decreased by more than 50% Revenue decreased by 25- 50% Revenue decreased by 0- 25% Revenue increased 1-9 10-49 50-249 250 and above %0 Tourism Business volume decreased by more than 50% Business volume decreased by 25-50% Business volume decreased by 0-25% Business volume increased %100 6 Business volume increased by more than 25% Business volume decreased by less than 25%

7. 7 Covid-19 crisis has effects on supply chains. Figure 15: Answers to the question «How much do you think your supply chains will be impacted?», % (Question 4) • When respondents were asked about the level of impact of Covid-19 crisis on supply chains on a scale of 1 to 4, 51% of companies considered that their supply chains «would be impacted substantially» (4) while 31% of respondents marked the extent to which their supply chains would be impacted as 3. On the other hand, total rate of those companies that think their supply chain would not be impacted at all or impacted to a small extent (1 & 2) is 18%. (Figure 15) • Looking at sectors of the respondents that answered this question as 3 and 4, it is observed that supply chain of textile and apparel sector would be impacted by 92%, while this rate is 77% in automotive, and 78% in food and beverage sector. (Figure 15.1) • No meaningful differences by company scale were found. As the most distinctive difference, rate of the respondents that answered ( 4 ) was 63% in Mediterranean region and 43% in Aegean region. • Combined with the question related to direct impact on enterprises (Question 1), the question related to the level of impact on supply chains presents some interesting difference. 62% of respondents stated the crisis impacted their company substantially while 51% stated their supply chains would be impacted substantially. The difference in between can be interpreted to result from the fact that perceived adverse effect on supply chains is still limited. A look at the same difference from another perspective indicates that rate of companies impacted to a small extent by the crisis is 14% of the total, while rate of companies that estimate their supply chains would be impacted to a small extent is 18%. (Figure 15 & Figure 16) %51 %31 %14 %4 1 2 3 4 Will not be impacted at all Will be substantially impacted Figure 16: Answers to the question «To what extent did Covid-19 impact your enterprise?», % (Question 1) % 62 % 24 % 11 % 3 1 2 3 4 Will not be impacted at all Will be substantially impacted Figure 15.1: Answers to the question «How much do you think your supply chains will be impacted?», % outstanding differences by sector (Question 4) %44 Banking, finance and insurance %56 %23 Automotive and auxiliary industries %77 %22 Food and Beverages %78 %19 Construction %81 %19 Durables %81 %15 Agriculture and livestock %85 %13 Information and telecommunications %87 %11 Tourism %89 %8 Textiles and apparel %92 %8 1,2 Machinery and equipment %92 7 3,4

8. 8 Covid-19 crisis is considered as a serious threat by many companies and it causes strategies to be reviewed. Figure 17: Answers to the question «Do you consider Covid-19 crisis as a serious threat to your enterprise?», % (Question 5) Figure18: Answers to the question «Are you reviewing your strategy and activities for 2020 due to Covid-19 crisis?, % (Question 6) • To the question «Do you consider Covid-19 crisis as a serious threat to your enterprise?», 81% of the companies responded «yes». (Figure 17) • When answers are evaluated by company scale and main field of activity, the answer «yes» remains predominant across all businesses. It can be seen that the threat posed by the crisis does not change in different brackets such as company scale or sector. Covid-19 crisis is considered a serious threat by the majority of companies all around the country. (Figure 17.1, 17.2) • To the question «Are you reviewing your strategy and activities for 2020 due to Covid-19 crisis?», 79% of the companies answered «yes», while 19% answered «not yet». (Figure 18) The fact that level of impact and duration of the crisis is yet unforeseeable may be attributed to the latter. Yes %79 %81 Yes %15 To some extent Not yet %19 %3 Not sure No %2 %1 No Figure 17.2: Distribution by main activity, % (Question 5) Figure17.1: Distribution by company scale, % (Question 5) %84 %87 %79 %78 %80 %78 %77 %18 %16 %16 %11 %17 %16 %2 %1 %1 %1 %13 %2 %2 %1 1-9 10-49 50-249 250 and above Trade/Retail Production/Manufacturing Services Yes To some extent No Yes To some extent No 8

9. 9 Covid-19 crisis is considered as a serious threat by many companies and it causes strategies to be reviewed. Figure 19: Answers to the question «Does your enterprise have a business continuity plan or a contingency plan?», % (Question 7) • On the other hand, there are striking differences among companies’ levels of strategic preparedness to such a crisis. To the question “Does your enterprise have a business continuity or contingency plan?”, 34% of the respondents answered «neither of the two». 30% is the rate of companies that have both a business continuity plan and a contingency plan. 21% of the companies have only a business continuity plan and 16% only a contingency plan. (Figure 19) • Looking at distribution of existence of business continuity and contingency plans by company scale, one can observe that the level of preparedness to the crisis goes up as the company scale gets bigger. 61% of large-scale companies with more than 250 employees have both a business continuity plan and a contingency plan. This rate is around 20% for small and micro-scale companies. (Figure 19.1) • In Western Marmara, Mediterranean and Southeastern Anatolia, rate of companies that stated they had "both plans" is below the average and rate of companies that stated they had "neither plans" is above the average. Therefore, these 3 regions stand out as the regions under the greatest risk in terms of business continuity and contingency planning. Companies in Istanbul, Eastern Marmara and Aegean regions are above the average in terms of having both plans at the same time. (Figure 19.2) Figure 19.1: Distribution by company scale, % (Question 7) %61 %34 Neither of the two %44 %42 %41 %38 %36 %35 %30 Both exist %31 %23 %21 %19 Only business continuity plan %21 %8 Only emergency plan %16 1-9 10-49 50-249 250 and above Both exist Neither of the two Only one exists Figure 19.2: Distribution by region, % (Question 7) %52 %41 %41 %40 %39 %39 %37 %38 %38 %37 %37 %36 %33 %32 %31 %31 %31 %30 %29 %26 %25 %22 %19 %17 Southeastern Anatolia Western Marmara West Anatolia Mediterranean Eastern Black Istanbul Eastern Marmara Aegean Sea Both exist Neither of the two Only one exists 9

10. 10 While the practice of telecommuting is impossible for majority of the companies, there are differences between sectors and regions. • 51% of respondents stated infrastructure and digital means of their enterprise are not adequate for telecommuting while 39% said they had infrastructure and digital means. (Figure 20 ) • Adequacy of infrastructure for telecommuting practices poses important differences by sector and company scale. 52% of companies in Istanbul stated they had adequate infrastructure and digital means for telecommuting, while this rate is 40% in Aegean region, 30% in Mediterranean region and 16% in Southeastern Anatolia. (Figure 21) • While telecommuting is possible for 70% of large companies, this rate falls to 32% for small-scale companies. (Figure 22) Similarly, this rate is 45% in services sector, while it is 34% in manufacturing sector and 29% in trade/retail sector. (Figure 23) Figure 21: Answers to Question 8, outstanding differences by region %74 %67 %55 %54 %52 %52 %46 %46 %45 %41 %40 %37 %32 %30 %26 %16 Southeastern Anatolia Eastern Black Sea Mediterranean West Anatolia Aegean Western Marmara Eastern Marmara Istanbul Yes No Figure 20: Answers to the question «Are infrastructure and digital means of your enterprise adequate for telecommuting?», % (Question 8) Figure 22: Answers to Question 8, outstanding differences by company scale Figure 23: Answers to Question 8, outstanding differences by main activity %51 %70 %68 %60 %55 %57 %53 %39 %45 %45 %47 %43 %34 %32 %29 %30 Services Production/Manufacturing Trade / Retail 1-9 10-49 50-249 250 and above 10 Yes No Yes No Yes No

11. 11 Daily routine of majority of the companies has shifted towards crisis management. However, there is a lack of information required for crisis management. Figure 25: Answers to the question «How would you define your current daily routine?», % distribution by company size (Question 9) Figure 24: Answers to the question «How would you define your current daily routine?», % (Question 9) • Only 8% of companies stated their business was going on as usual, while 32% stated they partially started crisis management, and 29% started crisis management intensively. Nearly one third of the companies said their operations halted. (Figure 24) • There are serious differences in this topic according to company scale. Rate of companies that halted operations is 11% among large companies, while this rate is 36% among small-scale companies. Rate of companies that moved partially to crisis management is as high as 61% among large companies, and it is around 30% among SMEs. (Figure 25) %61 %32 %31 %29 %38 %36 %34 %33 %30 %27 %29 %25 %23 %20 %8 %11 %10 %9 %7 %7 1-9 10-49 50-249 250 and above Business continues as usual Business partially shifted to crisis management Business largely shifted to crisis management Operations halted Business continues as usual Business partially shifted to crisis management • Important problems are observed in terms of accessing knowledge needed for crisis management. To the question «Is the information you obtained about Covid-19 crisis sufficient for you to make plans and to carry out crisis management?», only 24% of companies said “yes”, while 35% said “no”, and 41% said “not sure”. (Figure 26) • Regarding sources of information of respondents, to the question «From which sources of information do you follow up news on Covid-19 crisis?», 84% of companies responded “TV”, 81% “social media”, while the rate of companies that pointed to private sector associations and professional organizations is 54%. (Figure 27) 11 Business largely shifted to crisis management Operations halted Figure 26: Answers to the question «Is the information you obtained about Covid-19 crisis sufficient for you to make plans and to carry out crisis management?», % overall distribution (Question 10) Figure 27: Answers to the question «From which sources of information do you follow up news on Covid-19 crisis?», % overall distribution (Question 11) %41 %35 Television 84% Social media 81% %24 Private sector umbrella organisations and professional associations 54% Newspapers and other print media 45% Yes No Not sure

12. 12 95% of companies took various measures against the crisis. Figure 28: Answers to the question «Did you take measures in your enterprise about Covid-19 crisis?», % (Question 12) • 95% of respondents answered “yes” to the question «Did you take measures in your enterprise about Covid-19 crisis?» (Figure 28) On the other hand, differences stand out among measures taken by companies. • 85% of companies improved workplace hygiene conditions. Three other measures taken by a considerable part of companies include supplying protective equipment at the workplace, cancellation of business travels and reducing number of employees available at the workplace simultaneously. (Figure 29) • Rate of companies that changed their leave policies is 43%, rate of companies that offered their employees the option of working from home is 37%, and those that made it obligatory to work from home is 21%. (Figure29) • Other than the measures above, respondents were asked about what other measures they took. Answers to this question are summarized below. %95 Yes %5 No Figure 29: Measures taken by those who answered «yes» to the question «Did you take measures in your enterprise about Covid-19 crisis?», % (Question 12a) Some measures taken by 64 companies that gave different responses other than the provided options include; o Temporary, indefinite shutdown o Reduction of number of shifts or working hours o Cancelling physical meetings and interviews or making them digital o Leave for employees under high-risk category o No customer or visitor accepted at workplace, ban on ordering food from outside the premises o Providing necessary information and implementing procedures about protection; for example disinfection upon contact with cash, taking of temperature at entry into premises o Shortening lunch time, reducing number of employees eating simultaneously in the company cafeteria, social distancing or shifting to lunch box system 85% Improve hygiene at workplace Supply additional protective gear/equipment 63% 61% Cancel business travels Reduce the number of employees simultaneously available at workplace 56% 43% Change leave policies 37% Allow optional telecommuting 21% Impose telecommuting 12

13. 13 A sizeable proportion of enterprises need that their payment of bills/taxes/social security contributions are postponed and discounted in addition to financial support. Outstanding personal measures • Respondents were asked about the measures they took on a personal basis other than the measures enterprises took and the state has taken. Among the outstanding measures taken, 94% of respondents stated they respected social distancing, 92% pointed to improving personal hygiene, and 74% took measures to restrict children and the elderly to leave home. (Figure 31) • Analysis of answers of respondents that ticked the “Others” box highlights 3 other matters: • Telecommuting, personal isolation or reducing number of hours at work • Healthy diet, exercise • Use of PPE • To the question «What are the most important support mechanisms for you?», 80% of respondents answered “postponement of payment of bills/taxes/social security contributions”, and 77% said “tax discounts”. Financial support to SMEs, postponement of repayment of loan, cheque and commercial debts are among other measures demanded by most of the companies. In addition, 26% of respondents pointed to psycho-social support for employees, 24% to medical and protective equipment support. (Figure 30) • Analysis of answers of respondents that are mentined on the “Others” option box brings 4 other matters to the forefront: • Support for or full coverage of obligatory expenses (salaries, rent, energy costs, taxes and fees) • Support for cheque payments to maintain commercial relations • Expansion of scope of access to short-time working allowance • Psycho-social support Figure 31: Answers to the question «What personal measures did you take against Covid-19 crisis?», % (Question 14) Figure 30: Answers to the question «What are the most important support mechanisms for you?», % (Question 13) Postponement of payment of bills/taxes/social… 80% I am avoiding social contact 94% Tax discounts 77% Financial support to SMEs 71% Postponement of repayment of loan, cheque and… 62% I increased personal hygiene 92% Transparent and continuous communications 52% Psycho-social support for employees 26% In-kind or financial support for procuring medical… I restricted children and elderly going out 74% 24% Financial support for childcare 10% 13

14. 14 Establishment of Companies’ Advantages and Resilience to Covid-19 Crisis Index Methodology Companies’ answers to the following questions in “Survey about Impact of COVID-19 on Enterprises and Needs” were classified as their relative advantage and resilience to crisis and answers were quantified by assigning certain weights to them. Each index was calculated with a minimum value being 0 and maximum value being 100. Advantage Index I. To what extent did Coronavirus impact your enterprise? (35%) • «1» the highest advantage (the lowest impact), «4» the lowest advantage (the highest impact). II. How did Coronavirus crisis impact sales/business volume of your enterprise? (35%) • «Business volume increased» the highest weight, «Business volume fell by more than 50%» the lowest weight. III. How much do you think your supply chains will be impacted? (30%) • «1» the highest, «4» the lowest weight. Level of resilience Level of advantage Resilience Index I. Does your enterprise have a business continuity plan or a contingency plan? (30%) • «Both» the highest, «Neither» the lowest weight II. Are infrastructure and digital means of your enterprise adequate for telecommuting? (30%) • «Yes» the highest, «no» the lowest weight III. Did you take measures in your enterprise about Coronavirus crisis? (20%) • Companies having taken all the 7 measures are given 21 points, each with 3 points. IV. Are you reviewing your strategy and activities for 2020 due to Coronavirus crisis? (10%) V. Is the information you obtained about Coronavirus crisis sufficient for you to make plans and to carry out crisis management? (10%) 14

15. 15 Interaction of advantage and resilience indices : Different company segments • Level of advantage includes the extent to which elements beyond a company’s control, for example sector and supply chain are impacted by adverse consequences of Covid-19. In other words, advantaged companies are those that are less impacted by the crisis. • Level of resilience is an index value made up of elements under a company’s control such as strategic planning, crisis management capabilities, existence of contingency/business continuity plans. • 59% of 780 respondent companies are, by nature, in a disadvantaged position against Covid-19 crisis. 1 in 3 companies that are in a disadvantaged position demonstrates a level of resilience above the average in terms of measures taken against the crisis. It may be relevant to differentiate strategies of support against the crisis according to resilience and advantage levels of companies. • It may be relevant to differentiate strategies of support to companies according to 4 segments shown on the right hand-side established according to resilience and advantage levels of companies. • In this context, it may be relevant to make separate needs analyses for the following segments and develop specific strategies accordingly: • Disadvantaged but resilient companies (20% of all companies) • Disadvantaged and vulnerable companies (39%) • Advantaged and resilient companies (20%) • Advantaged but vulnerable companies (17%) It is important to monitor and update these data as the scale and duration of the crisis become more foreseeable. Figure 32: Distribution of companies by natural advantage and resilience level 100 Disadvantaged but resilient companies (20%) Advantaged and resilient companies 90 (20%) 80 Level of resilience 70 60 50 Average value = 39.6 40 30 Disadvantaged and vulnerable companies (39%) 20 Advantaged but vulnerable companies 10 (17%) Average value = 9.5 0 0 10 20 30 40 50 60 70 80 90 100 Level of advantage (being impacted to a small extent) 15

16. 16 Annex 1: Questions to Enterprises Question 1: To what extent did Covid-19 impact your enterprise? Other Questions • In which city does your enterprise operate? Question 2: How longer will effects of Covid-19 crisis on your business will last? Question 3: How did Covid-19 crisis impact sales/business volume of your enterprise? • What is the main field of activity of your enterprise? • In which sector does your enterprise operate? Question 4: How much do you think your supply chains will be impacted? • How many employees does your enterprise employ? Question 5: Do you consider Covid-19 crisis as a serious threat to your enterprise? • What is your current capacity utilization ratio? Question 6: Are you reviewing your strategy and activities for 2020 due to Covid-19 crisis? • What is your expected capacity utilization ratio for Q2 2020 (April-June)? Question 7: Does your enterprise have a business continuity plan or a contingency plan? • Is the information you obtained about Coronavirus crisis sufficient for you to make plans and to carry out crisis management? Question 8: Are infrastructure and digital means of your enterprise adequate for telecommuting? • Do you consider Covid-19 crisis as a serious threat to your enterprise? • How can institutions like Business for Goals Platform, TÜSİAD, TÜRKONFED Question 9: How would you define your current daily work routine? support you in this process? Question 10: Is the information you obtained about Coronavirus crisis sufficient for you to make plans and to carry out crisis management? Question 11: From which sources of information do you follow up news on Covid-19 crisis? Question 12: Did you take measures in your enterprise about Covid-19 crisis? 12. a: If yes, what measures did you take? Question 13: What are the most important support mechanisms for you? Question 14: Which personal measures did you take against Covid-19 crisis? Question 15: Do you see any opportunities in Covid-19 crisis? 16

17. 17 Annex 2: Provinces of respondents within NUTS Western Black Sea BARTIN KARABÜK SAMSUN TOKAT Northeastern Anatolia ERZİNCAN ERZURUM IĞDIR Western Marmara BALIKESİR ÇANAKKALE EDİRNE TEKİRDAĞ Istanbul İSTANBUL Eastern Marmara BOLU BURSA ESKİŞEHİR KOCAELİ SAKARYA Eastern Black Sea ORDU TRABZON Central AnatoliaMiddle-eastern Southeastern Anatolia Mediterranean Aegean Western Anatolia Anatolia ADANA ANTALYA HATAY ISPARTA MERSİN AYDIN DENİZLİ İZMİR KÜTAHYA MANİSA MUĞLA ANKARA KARAMAN KONYA KAYSERİ NEVŞEHİR NİĞDE SİVAS YOZGAT ELAZIĞ MALATYA VAN BATMAN DİYARBAKIR GAZİANTEP MARDİN ŞANLIURFA ŞIRNAK 17